(Yicai) Feb. 20 -- Shares of several Chinese pharmaceutical companies in the innovative drugs industry surged after China unveiled its 2025 action plan to stabilize foreign investment.

Hangzhou Tigermed Consulting [SHE: 300347] ended up 9 percent at CNY59.18 (USD8.12) a share in Shenzhen today, while Innovation Medical Management [SHE: 002173] rose 7.2 to CNY10.88 and International Medical Investment [SHE: 000516] surged 9.9 percent to CNY6.64 (91 US cents). WuXi AppTec's stock [SHA: 603259] climbed 3 percent to CNY64.75 in Shanghai.

The Guotai CSI SH-HK-SZ Brand Name Drug Industry ETF [517110] rose 1.8 percent and the Guotai CSI Bio-medicine ETF [512290] climbed 1.7 percent.

China will support pilot regions in effectively implementing opening-up policies related to value-added telecommunication, biotechnology, wholly foreign-owned hospitals, and other areas, providing whole-journey services for foreign-invested projects in these sectors, according to the plan approved at an executive meeting of the State Council, the country's cabinet, held earlier this month.

Foreign businesses are encouraged to invest in fields related to animal husbandry, including breeding, feeding equipment production, and production of feed and veterinary medicine, and enjoy national treatment. Foreign investment is also welcomed in elderly care, culture and tourism, sports, health care, vocational education, finance, and other services.

The recent cost reduction in artificial intelligence model training brought by DeepSeek has accelerated the adoption of AI by pharma companies and medical institutions, Huatai Securities noted. "AI + Healthcare" has been undervalued by the market and deserves more attention from investors this year, it pointed out.

"AI + Healthcare" applications could transform drug development, cancer diagnosis, medical imaging, and surgical robotics, according to China Post Securities. The global market for AI solutions in healthcare will likely jump to USD155.3 billion by 2030 from USD13.7 billion in 2022, with a compound annual growth rate of 36 percent, indicating explosive growth potential.

AI development in the medical sector is inevitable under policies supporting innovative drugs, Minsheng Securities pointed out. Major domestic and international tech companies heavily invest in research and development, presenting a significant growth potential for the industry, it added.

Some 59,080 new foreign-invested firms were established in China last year, up 9.9 percent from the year before. The country attracted an annual overseas investment of over CNY1 trillion (USD137.3 billion) for three straight years between 2021 and 2023.

Editor: Martin Kadiev